Biodiesel Goes Bankrupt

The makers of BioWillie filed for bankruptcy.

Country music star Willie Nelson is singing the biodiesel blues. Though interest in the alternative fuel is steadily increasing, the road to making biofuels profitable doesn’t come without some bumps, even when one of the world’s most beloved singers is involved (see "The Biodiesel Band Bus," In Brief, November/December 2005). Five investment groups filed an involuntary Chapter 7 bankruptcy petition July 11 against Dallas-based Earth Biofuels, which produces, distributes and markets biodiesel fuels, including Nelson’s own BioWillie.

In May, Earth Biofuels listed more than $60 million in losses for 2006 in its annual report to the Securities and Exchange Commission. Despite the dismal numbers, the company—and Willie Nelson—aren’t giving up. Says a company spokesperson, "Earth Biofuels
will continue its ongoing operations and commitment to provide biodiesel fuel and liquefied natural gas to its markets."